Money And Monetary Policy Final PASSED Exam Questions and CORRECT Answers
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Money And Monetary Policy
Institution
Money And Monetary Policy
Money And Monetary Policy Final
PASSED Exam Questions and CORRECT
Answers
what are the functions of money? - CORRECT ANSWER- medium of exchange
unit of account
store of value
-------- currency is where a good with other value/usefulness is used as money (salt, gold,
cocoa beans) - CORRECT...
Money And Monetary Policy Final
PASSED Exam Questions and CORRECT
Answers
what are the functions of money? - CORRECT ANSWER- ✔✔medium of exchange
unit of account
store of value
-------- currency is where a good with other value/usefulness is used as money (salt, gold,
cocoa beans) - CORRECT ANSWER- ✔✔commodity
------- currency is where paper and coin money is backed by something else of value (gold or
silver) - CORRECT ANSWER- ✔✔convertible
what are two advantages of using paper money over other forms of money? - CORRECT
ANSWER- ✔✔won't expire
easy and cheap to make
what are the characteristics of money? - CORRECT ANSWER- ✔✔acceptability, legal
tender, relative scarcity
------ are used in place of hard currency to provide a safe way to carry money abroad -
CORRECT ANSWER- ✔✔traveler's checks
time deposits are ------ - CORRECT ANSWER- ✔✔certificates of deposit
-------- is a commitment to keeping your money at a bank for a period of time in exchange for
a high interest rate - CORRECT ANSWER- ✔✔time deposit
------- represent ownership in a specific company - CORRECT ANSWER- ✔✔stocks
, ------ means to buy more than one stock so that one company's low performance won't cause
you to lose everything - CORRECT ANSWER- ✔✔diversification
bonds represent an --------- - CORRECT ANSWER- ✔✔IOU
in --------- demand people demand money as a medium of exchange - CORRECT ANSWER-
✔✔transactional
in ------- demand people demand money as a store of value - CORRECT ANSWER- ✔✔asset
when interest rates are ---- people will choose to hold a larger amount of cash - CORRECT
ANSWER- ✔✔low
decrease GDP --- money demand - CORRECT ANSWER- ✔✔decrease
increase interest rate ---- money demand and ---- ad - CORRECT ANSWER- ✔✔increase
decrease
---- is the smallest and most liquid money - CORRECT ANSWER- ✔✔M1
M2 is composed of ----- , ------, and ------- - CORRECT ANSWER- ✔✔M1 savings deposits
small time deposits
the supple of money in a nation is controlled by the -------- - CORRECT ANSWER-
✔✔federal reserve
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